Covs Parts operates a 25 branch network in Western Australia and supplies a broad range of automotive parts and accessories, primarily to trade customers.

GPC wants to acquire the company that owns and operates Covs Parts stores across 16 locations in the greater metropolitan Perth region, and in the regional towns of Albany, Bunbury, Busselton, Esperance, Geraldton, Kalgoorlie, Karratha, Mandurah and Port Hedland.

The ACCC notes it made inquiries with a range of interested parties, including trade customers, specialist automotive parts suppliers, dealerships and retail-focused automotive parts suppliers in Perth and each of the regional towns.

Market inquiries indicated that trade customers are heavily reliant on GPC and Covs for their supply of automotive parts, particularly in regional towns, with limited other local options.

"Trade customers such as mechanic workshops have raised concerns that the proposed acquisition would result in GPC acquiring its closest competitor," Sims says.

"In particular, the ACCC has received market feedback about the potential for the combined GPC/Covs Parts business to raise the trade prices of automotive parts."

The ACCC intends to issue a public competition assessment in due course.